ReneSola: Hot Stock in a Hot Sector

ReneSola Ltd. (SOL) is a Chinese silicon wafer manufacturer whose stock is a hot IPO in a space that is red-hot. Most all solar companies that produce panels, except for First Solar which uses a different panel manufacturing process, use silicon solar wafers. There has been a shortage of the wafers due to increased demand so pricing is not an issue for a company like ReneSola.

Last week ReneSola topped Q1 estimates sending all the solar stocks higher. SOL's shares leaped as first quarter profits nearly tripled due to rising solar wafer production. The stock hit a new intraday 52-week high of $29.48 yesterday.

SOL looks solid going forward as current quarter earnings estimates have moved from .06 to .31 in the past 90 days. Next quarter earnings estimates have also moved from 0.16 to 0.34 in the last 90 days. With a 70 Price/Earnings ratio and 198% revenue growth (yoy) and 88% quarterly earnings growth (yoy), the stock is not terribly expensive at this time and could be cheap if earnings estimates continue to climb.

Disclosure: None

Comments

[msgtb:]

Short term looks good but long term watch out for Thin film panels using other than silicon. They should start coming online in the next couple of years.

2008 May 20 04:49 PM

[weng ho teng:]

Thin wafer is indeed problematic.

My favorite Chinese online stock is MYST.OB.

MYST.OB is in full partnership with Google and China Netcom on the new Subaye English B2B site.

Alibaba English now has serious competition.

2008 May 20 11:51 PM

[The Stockac...:]

This nice (but very old) article is good reading...but the newest news today once again is regain of share price of amazing SOL, it will do fantastic today, and the next 3 weeks (SOL-Renesola)... indications are clear that asians and their funds, institutions, etc., and even the public are well aware of the SOL success story... the stock was recently just changing hands from americans, to asians, asian located funds, in Hong Kong, Japan, Bangkok, and also also many europeans... each nite last week it was up quite a lot in asia, and on the London exchange, only to be dropped during american trading... but even the american dropping is now not affecting the stock price any more, the meaningless USA selling is now over and finished... and look today the price is going through the roof...Note that many articles are always in asian and chinese business magazines about SOL, that are never picked up to be published in US GOOGLE news... I am amazed at the important news of Chinese companies that never comes up when searching google news... many americans rely on google, and as such, americans figure there is no news... I have been very happy with this news service... I read it every day, as well as IBD (Investors Business Daily)... and other asian news services... with SOL, there is clear evidence that SOL is sort of becoming a household investment name in China, and the chinese and other asian populations are well aware of the fact that SOL's solar subcomponents/wafers/m... are being included in solar panels and solar equipment, for example on street lights throughout asia... SOL's products are making SOL exponential profit from this source today, not necessarily from people installing solar in homes... that is next year's profit source perhaps... today though , it is simply from millions of street lights in asia and europe. Also, SOL's subproducts are very inexpensive compared to its competitors. Note also that SOL has a PE varying in some finance news services, from only 8 to 18... amazing... the competition has PE's from 50 to 1000... terrible, too risky... and most show no profit at all... while SOL shows an amazing exponential profit, due to its amazing recycling technology. Hence why IBD still has it listed as the 4th best company in the world to invest in... You have to read carefully about SOL... as for the new ADS's, a temporary issue about SOL, similar situation really with any new exponentially growing company... years ago Michael Dell had to early issue much more stock, raise money, etc... he even sold his own stock to raise more cash, because he was limited in what DELL Co. could newly issue... DELL then fell in price 59%, people sold, called him an stock manipulator, thief, etc... then DELL stock steadily went up in value 10,000% over the next several years. Insider selling has many reasons, and the Chinese gov. securities officials have strict limits on stock issue, while demand for inexpensive SOL products is huge... so they had no choice but to raise money to grow and find a way to quickly build up supply, and keep the price of the product cheap... (some strange post I saw said SOL products were expensive, nonsense, the opposite is very true, so products are very cheap and effective...) so I suggest you read Chinese financial papers, look for another way to read about SOL other than from GOOGLE, or whatever nonsense internet only media...Look at what has been going on with SOL the last several days, and look at the price movement friday and today... (up10% today in London)... in a few months you will be deciding whether to sell SOL at $48, another tough decision to make, next fall... so have courage and patience with a great company like this... Your friend, the Stockaccumulator ...

2008 Jun 16 11:55 AM